Rocket Scientist

AAA

DEFINITION of 'Rocket Scientist'

In the world of finance, these are people with science and math degrees who work in the finance field building highly advanced quantitative finance models. These models help banking, insurance and investment firms to price financial instruments.

INVESTOPEDIA EXPLAINS 'Rocket Scientist'

If an investment firm hires a PhD student with a background in theoretical physics to create a model that prices futures and options, that person would be considered a "rocket scientist" by the traders in the investment firm because of the complexity and skill required to create these models that help traders of futures and options.

RELATED TERMS
  1. Quantitative Analysis

    A business or financial analysis technique that seeks to understand ...
  2. Derivative

    A security whose price is dependent upon or derived from one ...
  3. Financial Engineering

    The use of mathematical techniques to solve financial problems. ...
  4. International Association Of Financial ...

    A not-for-profit, professional society dedicated to promoting ...
  5. Futures

    A financial contract obligating the buyer to purchase an asset ...
  6. Option

    A financial derivative that represents a contract sold by one ...
Related Articles
  1. Options Basics Tutorial
    Options & Futures

    Options Basics Tutorial

  2. Einstein's Stock Tips: Gravity and Growth
    Trading Strategies

    Einstein's Stock Tips: Gravity and Growth

  3. Futures Fundamentals
    Insurance

    Futures Fundamentals

  4. Pick the Right Brokerage Account for ...
    Options & Futures

    Pick the Right Brokerage Account for ...

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center